2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 13 - Rates and Rate Making
1308 - Voluntary changes in rates.

     § 1308.  Voluntary changes in rates.
        (a)  General rule.--Unless the commission otherwise orders,
     no public utility shall make any change in any existing and duly
     established rate, except after 60 days notice to the commission,
     which notice shall plainly state the changes proposed to be made
     in the rates then in force, and the time when the changed rates
     will go into effect. The public utility shall also give such
     notice of the proposed changes to other interested persons as
     the commission in its discretion may direct. Such notices
     regarding the proposed changes which are provided to the
     utility's customers shall be in plain understandable language as
     the commission shall prescribe. All proposed changes shall be
     shown by filing new tariffs, or supplements to existing tariffs
     filed and in force at the time. The commission, for good cause
     shown, may allow changes in rates, without requiring the 60 days
     notice, under such conditions as it may prescribe.
        (b)  Hearing and suspension of rate change.--Whenever there
     is filed with the commission by any public utility any tariff
     stating a new rate, the commission may, either upon complaint or
     upon its own motion, upon reasonable notice, enter upon a
     hearing concerning the lawfulness of such rate, and pending such
     hearing and the decision thereon, the commission, upon filing
     with such tariff and delivering to the public utility affected
     thereby a statement in writing of its reasons therefor, may, at
     any time before it becomes effective, suspend the operation of
     such rate for a period not longer than six months from the time
     such rate would otherwise become effective, and an additional
     period of not more than three months pending such decision. The
     rate in force when the tariff stating the new rate was filed
     shall continue in force during the period of suspension, unless
     the commission shall establish a temporary rate as authorized in
     section 1310 (relating to temporary rates). The commission shall
     consider the effect of such suspension in finally determining
     and prescribing the rates to be thereafter charged and collected
     by such public utility. This subsection shall not apply to any
     tariff stating a new rate which constitutes a general rate
     increase as defined in subsection (d).
        (c)  Determination.--If, after such hearing, the commission
     finds any such rate to be unjust or unreasonable, or in anywise
     in violation of law, the commission shall determine the just and
     reasonable rate to be charged or applied by the public utility
     for the service in question, and shall fix the same by order to
     be served upon the public utility and such rate shall thereafter
     be observed until changed as provided by this part.
        (d)  General rate increases.--Whenever there is filed with
     the commission by any public utility described in paragraph
     (1)(i), (ii), (vi) or (vii) of the definition of "public
     utility" in section 102 (relating to definitions), and such
     other public utility as the commission may by rule or regulation
     direct, any tariff stating a new rate which constitutes a
     general rate increase, the commission shall promptly enter into
     an investigation and analysis of said tariff filing and may by
     order setting forth its reasons therefor, upon complaint or upon
     its own motion, upon reasonable notice, enter upon a hearing
     concerning the lawfulness of such rate, and the commission may,
     at any time by vote of a majority of the members of the
     commission serving in accordance with law, permit such tariff to
     become effective, except that absent such order such tariff
     shall be suspended for a period not to exceed seven months from
     the time such rate would otherwise become effective. Before the
     expiration of such seven-month period, a majority of the members
     of the commission serving in accordance with law, acting
     unanimously, shall make a final decision and order, setting
     forth its reasons therefor, granting or denying, in whole or in
     part, the general rate increase requested. If, however, such an
     order has not been made at the expiration of such seven-month
     period, the proposed general rate increase shall go into effect
     at the end of such period, but the commission may by order
     require the interested public utility to refund, in accordance
     with section 1312 (relating to refunds), to the persons in whose
     behalf such amounts were paid, such portion of such increased
     rates as by its decision shall be found not justified, plus
     interest, which shall be the average rate of interest specified
     for residential mortgage lending by the Secretary of Banking in
     accordance with the act of January 30, 1974 (P.L.13, No.6),
     referred to as the Loan Interest and Protection Law, during the
     period or periods for which the commission orders refunds. The
     rate in force when the tariff stating such new rate was filed
     shall continue in force during the period of suspension unless
     the commission shall grant extraordinary rate relief as
     prescribed in subsection (e). The commission shall consider the
     effect of such suspension in finally determining and prescribing
     the rates to be thereafter charged and collected by such public
     utility, except that the commission shall have no authority to
     prescribe, determine or fix, at any time during the pendency of
     a general rate increase proceeding or prior to a final
     determination of a general rate increase request, temporary
     rates as provided in section 1310, which rates may provide
     retroactive increases through recoupment. As used in this part
     general rate increase means a tariff filing which affects more
     than 5% of the customers and amounts to in excess of 3% of the
     total gross annual intrastate operating revenues of the public
     utility. If the public utility furnishes two or more types of
     service, the foregoing percentages shall be determined only on
     the basis of the customers receiving, and the revenues derived
     from, the type of service to which the tariff filing pertains.
        (d.1)  Multiple filings prohibited.--Except as required to
     implement an order granting extraordinary rate relief, no public
     utility which has filed a general rate increase request pursuant
     to this section shall file an additional general rate increase
     request pursuant to this section for the same type of service
     until the commission has made a final decision and order on the
     prior general rate increase request or until the expiration of
     the maximum period of suspension of the prior general rate
     increase request pursuant to this section, whichever is earlier.
        (e)  Extraordinary rate relief.--Upon petition to the
     commission at the time of filing of a rate request or at any
     time during the pendency of proceedings on such rate request,
     any public utility may seek extraordinary rate relief of such
     portion of the total rate relief requested as can be shown to be
     immediately necessary for the maintenance of financial stability
     in order to enable the utility to continue providing normal
     services to its customers, avoid reductions in its normal
     maintenance programs, avoid substantially reducing its
     employment, and which will provide no more than the rate of
     return on the utility's common equity established by the
     commission in consideration of the utility's preceding rate
     filing, except that no utility shall file, either with a request
     for a general rate increase or at any time during the pendency
     of such a request, more than one petition under this subsection
     pertaining to rates for a particular type of service, nor any
     supplement or amendment thereto, except when permitted to do so
     by order of the commission. Any public utility requesting
     extraordinary rate relief shall file with the petition
     sufficient additional testimony and exhibits which will permit
     the commission to make appropriate findings on the petition. The
     public utility shall give notice of the petition in the same
     manner as its filing upon which this petition is based. The
     commission shall within 30 days from the date of the filing of a
     petition for extraordinary rate relief, and after hearing for
     the purpose of cross-examination of the testimony and exhibits
     of the public utility, and the presentation of such other
     evidentiary testimony as the commission may by rule prescribe,
     by order setting forth its reasons therefor, grant or deny, in
     whole or in part, the extraordinary relief requested. Absent
     such order, the petition shall be deemed to have been denied.
     Rates established pursuant to extraordinary rate relief shall
     not be deemed to be temporary rates within the meaning of that
     term as it is used in section 1310.
        (f)  Limitation on rate increases by certain public
     utilities.--Whenever there is filed with the commission any
     tariff stating a new rate based in whole or in part on the cost
     of constructing an electric generating unit, the commission
     shall compare the estimated construction cost filed in
     accordance with section 515(a) (relating to construction cost of
     electric generating units) with the actual construction cost
     submitted by the utility in support of that tariff. If the
     actual construction cost exceeds the estimated construction
     cost, the rate determined by the commission under this section
     shall not be based on any part of that excess unless the public
     utility proves that part of the excess to have been necessary
     and proper. In making its determination under this subsection,
     the commission shall consider all relevant and material
     evidence, including evidence obtained pursuant to section 515.
     For purposes of this subsection "construction" includes any work
     performed on an electric generating unit which required, or is
     expected to require, the affected public utility to incur an
     aggregate of at least $100,000,000 of expenses which, in
     accordance with generally accepted accounting principles, are
     capital expenses and not operating or maintenance expenses.
     (July 6, 1984, P.L.602, No.123, eff. imd.; Sept. 27, 1984,
     P.L.721, No.153, eff. imd.; Dec. 21, 1984, P.L.1265, No.240,
     eff. imd.)

        1984 Amendments.  Act 123 added subsec. (f), Act 153 added
     subsec. (d.1) and Act 240 amended subsec. (a) and added subsec.
     (d.1). The amendments by Acts 153 and 240, adding subsec. (d.1),
     are substantially the same and have both been given effect in
     setting forth the text of subsec. (d.1). See section 5 of Act
     123 in the appendix to this title for special provisions
     relating to submission of cost estimate for units not completed.
        Cross References.  Section 1308 is referred to in sections
     523, 1309, 1316, 1318, 2211, 2804, 2806.1, 2807, 3015 of this
     title.